Slightly

ConocoPhillips expects its 1Q2008 production to be “slightly below” 1.8 million boe/d following an unplanned shutdown at a nonoperated gas processing plant in the San Juan Basin, which was complicated by cold weather. Output in the final quarter of 2007 was 1.84 million boe/d. The Houston-based major issued an interim update ahead of the April 24 scheduled release of quarterly results. The producer noted that in the first three months of this year, the average price of natural gas climbed 19% from the same period a year ago while crude oil prices surged 69%. Henry Hub first-of-month prices in 1Q2008 averaged $8.03/Mcf, compared with $6.77 in 1Q2007. Gas prices in 4Q2007 averaged $6.97/Mcf. Realized domestic refining and marketing margins for 1Q2008 are expected to be “significantly lower” than margins in 4Q2007 because of the absence of a quarterly inventory benefit, higher crude costs relative to benchmarks and lower margins. Conoco said the prices for its “secondary products,” such as fuel oil, natural gas liquids and petroleum coke “did not increase in proportion to the cost of the feedstocks to produce them.” Debt balance for the major was estimated to be about $21.5 billion at the end of March. Stock repurchases in the first three months of this year were estimated at $2.5 billion.

ConocoPhillips expects its 1Q2008 production to be “slightly below” 1.8 million boe/d following an unplanned shutdown at a nonoperated gas processing plant in the San Juan Basin, which was complicated by cold weather. Output in the final quarter of 2007 was 1.84 million boe/d.

Natural gas futures eased slightly in Tuesday’s trading as market bulls were unable to sustain their buying enthusiasm and traders noted an abrupt intraday tumble. Trade and commercial accounts may now be willing to lock in favorable prices. April natural gas futures fell 2.4 cents to $10 and May dropped 1.1 cents to $10.064. Crude oil continued to rampage higher, trading as high as $109.05 before settling at $108.75, a record.

As predicted, the latest spate of cold weather is proving to be short-lived, resulting in mixed price movement Thursday that was slightly weighted to the downside. Many points were less than a nickel up or down from flat.

Senate Majority Leader Harry Reid (D-NV) has indicated he will move forward with an energy bill (HR 6) that includes a slightly larger tax package ($21.8 billion), ignoring threats of a counterattack by Republicans and a possible veto by President Bush.

In preparing its customers for the winter heating season, Washington, DC-based Washington Gas said that assuming normal winter temperatures, customers can expect heating bills to vary slightly from last year — within a range of approximately 5% higher or lower — depending upon the amount of gas a customer uses, the type of service and the market price of gas.

The market was almost evenly divided between mostly small gains and losses Tuesday but leaning slightly to the downside — even more so if one gives extra weight to the huge declines in the Rockies that took quotes as low as 40 cents and left a couple of points averaging less than a dollar. Much of the U.S. is in a transition period from unusual recent heat to temperatures more befitting the approach of mid-October.

The Energy Information Administration (EIA) reported Thursday morning that 63 Bcf was injected into underground storage for the week ended Sept. 14. Despite the slightly lower than expected storage build and the news of Gulf of Mexico (GOM) evacuations and some shut-ins due to the arrival of a strengthening storm system, traders appeared thoroughly unimpressed on Thursday. October natural gas closed at $6.008, down 17.2 cents from Wednesday’s finish.

After climbing in morning trade, August natural gas futures bulls were aided in their quest ever so slightly Thursday as the Energy Information Administration (EIA) reported that a pedestrian 65 Bcf was injected into underground storage for the week ended July 13. As a result, the August contract worked higher to close out at $6.706, up 17.8 cents from Wednesday’s regular session finish.